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Use outbound telemarketing to generate leads: Business cold calling does work

Written by: Jim Sagar

Article Overview: Create a lead generation team to generate more leads and make your sales reps more effective.

Use outbound telemarketing to generate leads: Business cold calling does work

The phrase “cold calling” sends chills down the spines of many businesspeople. It’s often viewed as an intimidating, difficult, and boring process … and that means it doesn’t get done as often as it should.

However, outbound telemarketing campaigns are a great way to reach a group of targeted prospects or customers to communicate a message, gather feedback, and determine a next step for the relationship.

In many companies, sales reps should make hundreds or thousands of cold calls every month to set appointments and/or generate leads. But busy reps usually prefer to work on closing their existing pipeline. Prospecting often slips on the priority list; as a result, the sales pipeline isn’t always filled with new prospects.

Specialize for better results

If cold calling is an effective way to introduce your company to new prospects, don’t ignore it. Instead of forcing a sales team to devote time to prospecting, many companies use an in-house or outsourced telemarketing group to make a high volume of calls, find decisionmakers and qualify leads for the field sales group.

When telemarketers handle prospecting, salespeople can spend 100% of their time selling and closing. Your company can produce more revenue in the same amount of time; your reps earn more commission, they’re doing what they love, and they’re more satisfied with their jobs.

Forecast and budget; determine whether to build in-house or outsource

* Estimate your call volume, then think about hours of operation, fluctuations in call volume, and the skill set you’ll need in your reps.
* Your call volume also drives your headcount, software, phone system and the office space you’ll need.
* These requirements will help you decide whether to use a vendor or hire and manage a team in-house. If you look at vendors, the requirements will make your discussions easier and faster.
* Budget for everything including headcount, software licenses, bonuses and management.

Develop good scripts

Reps will need to capture attention, build value, and close; a good script will help them do it consistently.

* Make your scripts conversational, simple, and focused on the end goal.
* It helps to make and listen to calls as you’re developing and refining your script. What looks good on paper may not work on the phone.
* Get feedback from your team as well.

Train and coach your team

Regular coaching and quality assurance is crucial.

* Engage your reps, role-play and guide them through calls.
* Listen to calls regularly, evaluate your reps and coach them to improve their performance.

Make it fun!

Telemarketing is a tough job and turnover is a big issue.

* Make things fun with contests, events, and other incentives.
* Make their space comfortable and interesting – tiny cubes, old chairs and windowless rooms don’t put a smile in anyone’s voice.

Report your results

* Define the reports you’ll need -- your system may not be able to provide all of the data, but you can probably find an alternate solution.
* Use reports to consistently evaluate progress and improve your campaigns.

It’s all about execution, so manage your team and devote the resources necessary.

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Related Forum Posts
I hate Cold Calling! - In my past I was really scared to cold calling until I realized that cold calling in my line of work was the only way for me to generate accounts. I assiociated large amounts of pain in my life with not cold calling such as loss of house, car, wife.... The fear of losing all of that helped me over come the fear. Good luck with your problem It might help to think its all in your head and the only thing in the world that you have control over is your own mental thinking.
Re: Who hates cold calling? - I think it really depends on what you are selling. For example, we sell chiropractic software that they can enter and store their notes on. Since the law is requiring them to go electronic by 2014, we have a pretty good chance of calling someone who needs it. I agree that for other products and services cold calling would probably be a waste of time. I think the key to cold calling is knowing how to get past the gate keeper. If you just keep calling people and have no clue how to get to the decision maker, cold calling is a BIG waste of time. There are some really good books out there that will teach a person how to do that if he/she decides cold calling would be helpful to their business.
Re: Who hates cold calling? - Why anyone would use cold calling is beyond me. It's simply an ineffective tactic and a waste of time when you measure conversion rate. If you really understanding your customer segments and how your products and services provide value, there are many more effective strategies than cold calling.
Hunter or Farmer - Born, Bred or Both? - Hello everyone, As a sales recruiter, I meet a variety of sales personalities day in and day out. Recently, I met with one candidate who I would characterize as a "Farmer" i.e. wants to work with exisiting accounts, no cold calling, no prospecting but great customer service, follow up and upselling skills. He was having a hard time finding his next role and he asked about a Business Development role we had - a Hunter role i.e. cold calling, aggressive, no (or minimal) account base, territory management, target oriented. He asked if he could apply and said, "I can CHANGE! I cna learn how to hunt. I can do it." My question to you is: Can someone switch roles? Can a farmer be a hunter? Can a hunter be happy just farming? Thoughts?
Re: Who hates cold calling? - Here's how I have had success with cold calling: Adopt the right attitude.If you fear/hate cold calling, chances are you are feeling like an intruder. The person on the other end of the line isn't making us feel that way. We are. Why do we feel like an intruder? Could be a couple of reasons. One: we don't really believe in the value our product offers. Two: we aren't calling a somewhat qualified prospect. The person you are calling has problems. He/she WANTS solutions. EXAMPLE: I cold called someone yesterday. An ad agency. The web site offered a direct line to the agency principal. This was the conversation: "Hi, I'm a direct response copywriter who works with agencies who are swamped with writing projects. Do you ever hire outside writers?" [i:4b9wkh89]KEY: In one sentence he knows what I want. Before I called, I know that most agencies hire outside writers. It's a question of whether or not they need one now. [/i:4b9wkh89] His response? Yes. Now , here's where I need to resist the temptation to [u:4b9wkh89]tell[/u:4b9wkh89] him how great I am. I simply said, "I'd like to email you some evidence that shows how I can add value for your clients. Where can I email it to?" He gave me his email address and that was the end of the cold call. He didn't say , hmmmm, that would be nice...he simply, literally told me his email addresss. That's a sign he has a need. I sent him off some recent results I produced for a client. Yesterday he sent me an email asking to learn more about me. Who knows where it will go but it started with a cold call. So, why did this approach allow me to be heard and generate interest? I knew something about my potential prospect's needs. I let him know quickly what I was after. I didn't try to bend his ear with a 'Stop me when you hear something you like' story. Try this and see how if works for you. It's important to believe what you are offering can change the life of the person you're calling. Once you believe that, it's easy to understand that every time you make a call , you have a chance to make a difference for someone.


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